Grocers Harness AI to Cut Waste and Sharpen Pricing in Competitive Market
Updated
Updated · CNBC · Apr 17
Grocers Harness AI to Cut Waste and Sharpen Pricing in Competitive Market
6 articles · Updated · CNBC · Apr 17
Grocery retailers are increasingly turning to artificial intelligence to optimize pricing and reduce food waste amid rising competition and inflation.
Platforms like Flashfood enable stores to offer targeted discounts on perishable items nearing their best-by dates, converting potential waste into revenue.
This shift helps grocers balance affordability and profitability while providing deeper insights into consumer behavior and improving operational efficiency.
When AI sets grocery prices, who truly wins: the shopper or the supermarket?
Will AI mean you pay more for groceries than the person in line next to you?
As AI-powered price tags arrive, is government regulation of grocery pricing inevitable?
Can independent grocers survive the AI arms race against giants like Kroger?
As stores track every purchase, is your personal data the new price of food?
AI-Driven Food Waste Reduction: Kroger’s $700K Shopper Savings and Albertsons’ Zero Landfill Goal
Overview
In 2025 and early 2026, Kroger and Albertsons significantly expanded AI-driven solutions to reduce food waste and improve efficiency. Kroger scaled its Flashfood app across 100+ stores after a successful pilot that saved shoppers $700,000 and diverted 290,000 pounds of food from landfills. Albertsons tested and rolled out Afresh's AI platform in 17 distribution centers to optimize fresh inventory, supporting its zero landfill waste goal by 2030. These efforts respond to rising consumer price sensitivity and competition, while delivering financial benefits like reduced shrink and increased sales. Additionally, Albertsons introduced AI shopping tools that boosted basket sizes by 10%, highlighting AI's role in enhancing both sustainability and customer experience.